What Kinds of Insurance Do I Need for My Restaurant?

Owning and operating a restaurant can be an enjoyable and rewarding business venture. However, restaurants also represent significant financial investments and include many risks and exposures. Flammable substances, sharp utensils, hot surfaces and slippery floors are only some of the various perils and hazards amid the daily operations of many restaurants, and even a single incident could have significant financial consequences. With these stakes in mind, your business should prioritize adequate loss control measures, including a versatile restaurant insurance portfolio.

What Is Restaurant Insurance?

Many insurance companies may not offer a single restaurant insurance policy or package that can cover all of your business’s risks and exposures. Restaurant insurance may refer to a collection of policies that, when combined, create an adequate financial safety net that can limit out-of-pocket losses and damages arising from various incidents.

What Are the Key Components of a Restaurant Insurance Portfolio?

Given the many types of restaurants in the industry, your business’s insurance needs are unique. Still, several types of coverage may form the core of adequate restaurant insurance. When assembling your portfolio, consider including the following:

• General liability insurance—This coverage may limit your financial losses following incidents affecting third parties for which you were responsible, such as the following:
  • Bodily injury
  • Property damage
  • Personal and advertising injury (e.g., slander, libel, intentional copyright infringement and false advertising)
• Commercial property insurance—Also known as business property insurance, this coverage may financially protect your restaurant’s physical assets, including the following:
  • Buildings
  • Equipment
  • Tools
  • Inventory
  • Furniture
• Business interruption insurance—If a covered incident delays or disrupts your restaurant’s operations, this type of insurance may help pay for ongoing expenses and financial losses, such as the following:
  • Lost revenue
  • Rent and mortgage payments
  • Employee wages
  • Tax and loan payments
• Workers’ compensation insurance—Legally required in many cases, this coverage may provide financial assistance if employees are injured on the job or develop a work-related illness, including for the following:
  • Medical expenses
  • Lost or reduced wages
  • Disability benefits
  • Vocational rehabilitation
  • Employer legal costs
• Employment practices liability insurance—This coverage may help pay for legal costs and financial losses if a former, current or prospective employee accuses your restaurant of improper workplace conduct, such as the following:
  • Harassment
  • Discrimination
  • Improper hiring practices
  • Wrongful termination

Your restaurant should also conduct a thorough analysis of its operations to identify any additional insurance needs. For example, if you serve alcohol or use motor vehicles, liquor liability and commercial auto coverage should be prioritized, respectively.

Get the Right Coverage

With over two decades of experience serving restaurants and other businesses in the Tampa, FL, area, the knowledgeable team at Clearwater Partners is well-equipped to help you assess and address your insurance needs. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.